Operating Principle

2–4 min read

Switching Costs Are Often Psychological, Not Financial

Switching Costs Are Often Psychological, Not Financial

Switching Costs Are Often Psychological, Not Financial

Customers can stay with inferior options because switching feels like a loss.

Customers can stay with inferior options because switching feels like a loss.

Customers can stay with inferior options because switching feels like a loss.

Status quo bias creates psychological switching cost independent of actual price or effort.

Status quo bias creates psychological switching cost independent of actual price or effort.

Status quo bias creates psychological switching cost independent of actual price or effort.

Status quo bias creates psychological switching cost independent of actual price or effort.

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Operating Question

Have you addressed switching discomfort, not only the rational case?

Have you addressed switching discomfort, not only the rational case?

Have you addressed switching discomfort, not only the rational case?

Why It Matters

Status quo bias creates psychological switching cost independent of actual price or effort.

Supporting Evidence

William Samuelson and Richard Zeckhauser on status quo bias.

Research Notes

Apply with context: customer situation, severity, and evidence quality shape the effect.

Practical Actions

Address felt switching risk; lower psychological friction; do not mistake preference for intent.

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